GRAINGER REPORTS RESULTS FOR THE THIRD QUARTER 2026
• Delivered sales of $5.2 billion, up 11.3%, or 14.9% on a daily, organic constant currency basis
• Achieved operating margin of 16.0% on a reported basis, up 500 basis points, or 16.1% on an adjusted basis, up 90 basis points, which excludes certain non- recurring items, notably the loss related to the Company's exit of the U.K. market in the prior year period
• Generated diluted EPS of $12.42 on a reported basis, up 102.9%, or $12.54 on an adjusted basis, up 22.8%
• Produced $661 million in operating cash flow and returned $396 million to Grainger shareholders through dividends and share repurchases
• Increasing full year 2026 earnings outlook, including diluted adjusted EPS range of $47.00 to $48.00
CHICAGO, November 4, 2026 - Grainger (NYSE: GWW) today reported results for the third quarter of 2026 with sales of $5.2 billion, up 11.3%, or 14.9% on a daily, organic constant currency basis, and adjusted diluted EPS of $12.54, up 22.8% compared to the third quarter of 2025.
“The third quarter performance reflects our consistent execution and an improving demand environment,” said D.G. Macpherson, Chairman and CEO. “As customers continue to turn to us for the products and solutions they need, both our High-Touch Solutions and Endless Assortment segments delivered impressive growth. Following another quarter of strong performance, we are increasing our 2026 guidance and remain on track for an exceptional year.” 1
($ in Q3'26 millio… vs. except Q3 2026 Q3 2025 Q3'25 per Fav. / share (Unfav.) amount… Reported Adjust… Reported Adjust… Reported Adjust… Net $5,181 $5,181 $4,657 $4,657 11.3% 11.3% Sales Gross $2,011 $2,011 $1,798 $1,798 11.8% 11.8% Profit Operat… $828 $836 $511 $707 62.0% 18.2% Earnin… Net Earnin… Attrib… $587 $593 $294 $490 99.7% 21.0% to W.W. Graing… Inc. Diluted Earnin… $12.42 $12.54 $6.12 $10.21 102.9% 22.8% Per Share Gross Profit 38.8% 38.8% 38.6% 38.6% 20 bps 20 bps Margin Operat… 16.0% 16.1% 11.0% 15.2% 500 bps 90 bps Margin Effect… 1,040 Tax 24.3% 24.3% 34.7% 24.8% bps 50 bps Rate (1)Ref… transa… costs associ… with the acquis… of techno… assets from Adroit Worldw… Media, Inc. in the third quarter of 2026. (2)Ref… the loss from the Compan… exit of the U.K. market, includ… the sale of the Cromwe… busine… and closure of Zoro U.K., announ… in the third quarter of 2025 and comple… in the fourth quarter of 2025. See the supple… inform… of this release for further inform… regard… the Compan… non-GA… measur… includ… reconc… to the most direct… compar… GAAP measur…
Sales in the quarter increased 11.3% compared to the third quarter of 2025. When normalizing for the Company's exit from the U.K. market and the impact of foreign currency exchange, sales on a daily, organic constant currency basis increased 14.9% compared to the third quarter of 2025.
In the High-Touch Solutions - N.A. segment, sales were up 13.8% on both a reported and daily, constant currency basis compared to the third quarter of 2025. Results for the segment were driven by double-digit volume growth and continued price inflation as cost increases were passed. In the Endless Assortment segment, sales were up 11.9% compared to the third quarter of 2025, or up 19.3% on a daily, organic constant curre ncy basis. Growth for the segment was driven by strong performance at both MonotaRO and Zoro.
Gross profit margin was 38.8% in the third quarter of 2026, up 20 basis points compared to the third quarter of 2025, driven by expansion across the Endless Assortment segment and a benefit related to the Company's exit from the U.K. market.
In the High-Touch Solutions - N.A. segment, gross profit margin was 40.8%, down 30 basis points compared to the prior year quarter due to unfavorable freight expense and mix. In the 2 Endless Assortment segment, gross profit margin increased by 90 basis points from the third quarter of 2025 due to improvement at both MonotaRO and Zoro.
For the third quarter of 2026, total Company reported operating earnings were $828 million, up 62.0% compared to the third quarter of 2025. Operating margin was 16.0%, a 500 basis point increase compared to the third quarter of 2025. On an adjusted basis, operating earnings were $836 million, up 18.2% compared to the third quarter of 2025. Adjusted operating margin was 16.1%, a 90 basis point increase compared to the third quarter of 2025. This increase in adjusted operating margin was driven by sales leverage in both segments and a benefit related to the Company's exit from the U.K. market. These adjusted results for the quarter exclude transaction costs associated with the acquisition of technology assets in the current year period and the loss related to the Company's exit of the U.K. market, including the sale of the Cromwell business and closure of Zoro U.K., in the prior year period.
Diluted earnings per share for the third quarter of 2026 were $12.42 on a reported basis, up 102.9% compared to the third quarter of 2025. On an adjusted basis, diluted EPS was $12.54, up 22.8% compared to the third quarter of 2025. The increase was due primarily to strong operating performance, fewer shares outstanding, and a lower effective tax rate.
For the third quarter of 2026, the effective tax rate was 24.3%, compared to 34.7% in the third quarter of 2025. On an adjusted basis, the effective tax rate was 24.3% compared to 24.8% in the prior year period. The variance for the adjusted tax rate was primarily due to additional tax credit benefits recorded in the third quarter of 2026.
During the third quarter of 2026, the Company generated $661 million of cash flow from operating activities driven by strong net earnings. The Company invested $115 million in capital expenditures, resulting in free cash flow of $546 million. During the quarter, the Company returned $396 million to Grainger shareholders through dividends and share repurchases. 3
(1) Guidance provided is on an adjusted basis. Daily, organic constant currency sales growth is adjusted for the impact of certain divested or closed businesses in the comparable prior year period post date of divestiture or closure and changes in foreign currency exchange. The Company believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. For further details see the supplemental information of this release.
The Company will conduct a live conference call and webcast at 11:00 a.m. ET on Wednesday, November 4, 2026, to discuss the third quarter results. The event will be hosted by D.G. Macpherson, Chairman and CEO, and Laurie Thomson, Vice President and Interim CFO, and can be accessed at invest.grainger.com . To access the conference call via phone, please send a request to InvestorRelations@grainger.com. For those unable to participate in the live event, a webcast replay will be available for 90 days at invest.grainger.com .
W.W. Grainger, Inc., is a leading broad line distributor with operations primarily in North America and Japan. At Grainger, We Keep the World Working® by serving more than 4.6 million customers worldwide with maintenance, repair and operating (MRO) products and value-added solutions delivered through innovative technology and deep customer expertise. Known for its commitment to service and purpose-driven culture, the Company reported 2025 revenue of $17.9 billion. For more information, visit www.grainger.com . 4
to view information about the Company, including a supplement regarding 2026 third quarter results and additional Company information.
All statements in this communication, other than those relating to historical facts, are “forward-looking statements” under the federal securities laws. Forward-looking statements can generally be identified by their use of terms such as “anticipate,” “estimate,” “believe,” “expect,” “could,” “forecast,” “may,” “intend,” “plan,” “predict,” “project,” “will,” or “would,” and similar terms and phrases, including references to assumptions. Grainger cannot guarantee that any forward-looking statement will be realized and achievement of future results is subject to risks and uncertainties, many of which are beyond Grainger's control, which could cause Grainger's results to differ materially from those that are presented. Forward-looking statements include, but are not limited to, statements about future strategic plans and future financial and operating results. Important factors that could cause actual results to differ materially from those presented or implied in the forward-looking statements include, without limitation: inflation, higher product costs or other expenses, including operational and administrative expenses; a major loss of customers; loss or disruption of sources of supply; changes in customer or product mix; increased competitive pricing pressures; changes in third-party practices regarding digital advertising; failure to enter into or sustain contractual arrangements on a satisfactory basis with group purchasing organizations; failure to develop, manage or implement new technology initiatives, acquisitions or business strategies including with respect to Grainger's eCommerce platforms and artificial intelligence; failure to adequately protect our intellectual property or successfully defend against infringement claims; fluctuations or declines in Grainger's gross profit margin; Grainger's responses to market pressures; the outcome of pending and future litigation or governmental or regulatory proceedings, including with respect to wage and hour, anti-bribery and corruption, environmental, regulations related to advertising, marketing and the internet, consumer protection, pricing (including disaster or emergency declaration pricing statutes), product liability, compliance or safety, trade and export compliance, general commercial disputes, or privacy and cybersecurity matters; investigations, inquiries, audits and changes in laws and regulations; failure to comply with laws, regulations and standards, including new or stricter environmental laws or regulations; government contract matters, including new or revised provisions relating to contract compliance or performance; the impact of any government shutdown; disruption or breaches of information technology or data security systems involving Grainger or third parties on which Grainger depends; general industry, economic, market or political conditions; general global economic conditions, including existing, new, or increased tariffs, trade issues and changes in trade policies, inflation, and interest rates; currency exchange rate fluctuations; market volatility, including price and trading volume volatility or price declines of Grainger's common stock; an incident that adversely impacts Grainger’s reputation or brand; commodity price volatility; facilities disruptions or shutdowns; higher fuel costs or disruptions in transportation services; effects of outbreaks of pandemic disease or viral contagions, global conflicts, natural or human-induced disasters, extreme weather, and other catastrophes or conditions; effects of climate change; failure to execute on our corporate responsibility efforts; competition for, or failure to attract, retain, train, motivate and develop executives and key team members; loss of key members of management or key team members; loss of operational flexibility and potential for work stoppages or slowdowns if team members unionize or join a collective bargaining arrangement; changes in effective tax rates; changes in credit ratings or outlook; Grainger's incurrence of indebtedness or failure to comply with restrictions and obligations under its debt agreements and instruments and other factors that can be found in our filings with the Securities and Exchange Commission, including our most recent periodic reports filed on Form 10-K and Form 10-Q, which are available on our Investor Relations website. Forward- looking statements are given only as of the date of this communication and we disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. 5 Contacts:
Media: Investors: Erin Ptacek Kyle Bland VP, Communications & Public Affairs VP, Investor Relations Robb Kristopher Kevin Byrne Director, External Affairs Director, Investor Relations Media_Inquiries@grainger.com InvestorRelations@grainger.com
As of September 30, December 31, Assets (Unaudited) 2026 2025 ────────────────────────────────────────────────────────────────────────────── Current assets Cash and cash $ 768 $ 585 equivalents Accounts receivable (less allowance for 2,877 2,329 credit losses of $31 and $32, respectively) Inventories – 2,303 2,394 net Prepaid expenses and 255 176 other current assets Total current 6,203 5,484 assets Property, buildings and 2,488 2,268 equipment – net Goodwill 521 360 Intangibles – 327 265 net Operating lease 354 345 right-of-use Other assets 235 240 Total assets $ 10,128 $ 8,962 Liabilities and Shareholders’ Equity Current liabilities Current $ 227 $ 126 maturities Trade accounts 1,184 963 payable Accrued compensation 412 343 and benefits Operating lease 73 73 liability Accrued 447 386 expenses Income taxes 33 49 payable Total current 2,376 1,940 liabilities Long-term debt 2,458 2,362 Long-term operating lease 310 301 liability Deferred income taxes and tax 151 121 uncertainties Other non-current 95 97 liabilities Shareholders' 4,738 4,141 equity Total liabilities and $ 10,128 $ 8,962 shareholders’ equity
Three Nine Cash Months Months flows Ended Ended from September Septemb… operat… 30, 30, activi… 2026 2025 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net $ 616 $ 321 $ 1,797 $ 1,329 earnin… Adjust… to reconc… net earnin… to net cash provid… by operat… activi… Provis… for 6 7 19 20 credit losses Deferr… income taxes 2 36 33 37 and tax uncert… Deprec… and 67 65 195 190 amorti… Non-ca… lease 19 21 59 62 expense Impair… loss and net losses — 196 — 196 from busine… divest… Stock-… 19 14 58 49 compen… Change in operat… assets and liabil… Accoun… -47 -40 -557 -252 receiv… Invent… 72 -8 86 -27 Prepaid expens… and -40 1 -72 -32 other assets Trade accoun… -138 -46 174 185 payable Operat… lease -24 -26 -72 -79 liabil… Accrued 127 64 148 4 liabil… Income taxes – -16 -5 -20 -42 net Other non-cu… -2 -3 -4 -20 liabil… Net cash provid… 661 597 1,844 1,620 by operat… activi… Cash flows from invest… activi… Capital -115 -258 -396 -558 expend… Procee… from — — — 4 sale of assets Cash paid for -215 — -215 — busine… acquis… Other – -4 -2 -17 11 net Net cash used in -334 -260 -628 -543 invest… activi… Cash flows from financ… activi… Short-… borrow… (repay… origin… maturi… 225 — 100 — of 90 days or less, net Procee… from 50 27 102 90 debt Paymen… -3 — -7 -503 of debt Procee… from stock 1 — 9 2 options exerci… Paymen… for employ… taxes -2 -1 -32 -31 withhe… from stock awards Purcha… of -278 -291 -739 -798 treasu… stock Purcha… of -1 — -71 — noncon… intere… Cash divide… -145 -133 -398 -358 paid Other – — — 9 -1 net Net cash used in -153 -398 -1,027 -1,599 financ… activi… Exchan… rate effect on cash 5 -1 -6 21 and cash equiva… Net change in cash 179 -62 183 -501 and cash equiva… Cash and cash equiva… 589 597 585 1,036 at beginn… of period Cash and cash equiva… $ 768 $ 535 $ 768 $ 535 at end of period
The Company supplements the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with the non-GAAP financial measures as defined below. The Company believes these non-GAAP financial measures provide meaningful information to assist investors in understanding financial results and assessing future performance as they provide a better baseline for analyzing the ongoing performance of its business by excluding items that may not be indicative of core operating results.
The Company has a controlling ownership interest in MonotaRO, which is part of the Endless Assortment segment. MonotaRO’s results are fully consolidated, reflected in U.S. GAAP, and reported one-month in arrears. Results will differ from MonotaRO’s externally reported financials which follow Japanese GAAP.
Adjusted gross profit , adjusted SG&A , adjusted operating earnings , adjusted operating margin , adjusted net earnings , adjusted diluted EPS
Exclude certain non-recurring items, like restructuring charges, asset impairments, gains and losses associated with business divestitures or closures and other non-recurring, infrequent or unusual gains and losses (together referred to as “non-GAAP adjustments”), from the Company’s most directly comparable reported U.S. GAAP figures (reported gross profit, SG&A, operating earnings, net earnings and EPS). The Company believes these non-GAAP adjustments provide meaningful information to assist investors in understanding financial results and assessing future performance as they provide a better baseline for analyzing the ongoing performance of its business by excluding items that may not be indicative of core operating results.
Calculated using total cash provided by operating activities less capital expenditures. The Company believes the presentation of FCF allows investors to evaluate the capacity of the Company's operations to generate free cash flow.
Refers to sales for the period divided by the number of U.S. selling days for the period.
Refers to daily sales excluding the sales of certain divested or closed businesses in the comparable prior year period post date of divestiture or closure and changes in foreign currency exchange rates.
Calculated by dividing current period local currency daily sales by current period average exchange rate and subtracting the current period local currency daily sales divided by the prior period average exchange rate.
As non-GAAP financial measures are not standardized, it may not be possible to compare these measures with other companies' non-GAAP measures having the same or similar names. These non-GAAP measures should not be considered in isolation or as a substitute for reported results. These non-GAAP measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. This press release also includes certain non-GAAP forward-looking information. The Company believes that a quantitative reconciliation of such forward-looking information to the most comparable financial measure calculated and presented in accordance with GAAP cannot be made available without unreasonable efforts. A reconciliation of these non-GAAP financial measures would require the Company to predict the timing and likelihood of future restructurings, asset impairments, and other charges. Neither of these forward-looking measures, nor their probable significance, can be quantified with a reasonable degree of accuracy. Accordingly, a reconciliation of the most directly comparable forward-looking GAAP measures is not provided.
The reconciliations provided below reconcile GAAP financial measures to non-GAAP financial measures used in this release: daily sales; daily, organic constant currency sales; and free cash flow. 10 Sales growth for the three months ended September 30, 2026
Q3 2026 Total Company High-Touch Endless Solutions - N.A. Assortment Reported sales 11.3% 13.8% 11.9% Daily impact —% —% —% Daily sales(1) 11.3% 13.8% 11.9% Foreign currency 1.2% —% 6.2% exchange(2) Business 2.4% —% 1.2% divestiture(3) Daily, organic constant 14.9% 13.8% 19.3% currency sales (1)Based on U.S. selling days, there were 64selling days in Q3 2026 and Q3 2025. (2)Excludes the impact of year-over-year foreign currency exchange rate fluctuations. (3)Excludes the net sales results of the divested Cromwell business and closed Zoro U.K. business, announced in the third quarter of 2025 and completed in the fourth quarter of 2025, in the prior year period on a daily basis.
11 Income statement adjustments for the three months ended September 30, 2026 and 2025
Full text with the tables
GRAINGER REPORTS RESULTS FOR THE THIRD QUARTER 2026
Continued strong results across the business;
Company increases full year 2026 earnings outlook
Third Quarter Highlights
• Delivered sales of $5.2 billion, up 11.3%, or 14.9% on a daily, organic
constant currency basis
• Achieved operating margin of 16.0% on a reported basis, up 500 basis points,
or 16.1% on an adjusted basis, up 90 basis points, which excludes certain non-
recurring items, notably the loss related to the Company's exit of the U.K.
market in the prior year period
• Generated diluted EPS of $12.42 on a reported basis, up 102.9%, or $12.54 on
an adjusted basis, up 22.8%
• Produced $661 million in operating cash flow and returned $396 million to
Grainger shareholders through dividends and share repurchases
• Increasing full year 2026 earnings outlook, including diluted adjusted EPS
range of $47.00 to $48.00
CHICAGO, November 4, 2026 - Grainger (NYSE: GWW) today reported results for the
third quarter of 2026 with sales of $5.2 billion, up 11.3%, or 14.9% on a daily,
organic constant currency basis, and adjusted diluted EPS of $12.54, up 22.8%
compared to the third quarter of 2025.
“The third quarter performance reflects our consistent execution and an
improving demand environment,” said D.G. Macpherson, Chairman and CEO. “As
customers continue to turn to us for the products and solutions they need, both
our High-Touch Solutions and Endless Assortment segments delivered impressive
growth. Following another quarter of strong performance, we are increasing our
2026 guidance and remain on track for an exceptional year.”
1
2026 Third Quarter Financial Summary
($ in Q3'26
millio… vs.
except Q3 2026 Q3 2025 Q3'25
per Fav. /
share (Unfav.)
amount…
Reported Adjust… Reported Adjust… Reported Adjust…
Net $5,181 $5,181 $4,657 $4,657 11.3% 11.3%
Sales
Gross $2,011 $2,011 $1,798 $1,798 11.8% 11.8%
Profit
Operat… $828 $836 $511 $707 62.0% 18.2%
Earnin…
Net
Earnin…
Attrib… $587 $593 $294 $490 99.7% 21.0%
to W.W.
Graing…
Inc.
Diluted
Earnin… $12.42 $12.54 $6.12 $10.21 102.9% 22.8%
Per
Share
Gross
Profit 38.8% 38.8% 38.6% 38.6% 20 bps 20 bps
Margin
Operat… 16.0% 16.1% 11.0% 15.2% 500 bps 90 bps
Margin
Effect… 1,040
Tax 24.3% 24.3% 34.7% 24.8% bps 50 bps
Rate
(1)Ref…
transa…
costs
associ…
with
the
acquis…
of
techno…
assets
from
Adroit
Worldw…
Media,
Inc.
in the
third
quarter
of
2026.
(2)Ref…
the
loss
from
the
Compan…
exit of
the
U.K.
market,
includ…
the
sale of
the
Cromwe…
busine…
and
closure
of Zoro
U.K.,
announ…
in the
third
quarter
of 2025
and
comple…
in
the
fourth
quarter
of
2025.
See the
supple…
inform…
of this
release
for
further
inform…
regard…
the
Compan…
non-GA…
measur…
includ…
reconc…
to
the
most
direct…
compar…
GAAP
measur…
Revenue
Sales in the quarter increased 11.3% compared to the third quarter of 2025. When
normalizing for the Company's exit from the U.K. market and the impact of
foreign currency exchange, sales on a daily, organic constant currency basis
increased 14.9% compared to the third quarter of 2025.
In the High-Touch Solutions - N.A. segment, sales were up 13.8% on both a
reported and daily, constant currency basis compared to the third quarter of
2025. Results for the segment were driven by double-digit volume growth and
continued price inflation as cost increases were passed. In the Endless
Assortment segment, sales were up 11.9% compared to the third quarter of 2025,
or up 19.3% on a daily, organic constant curre ncy basis. Growth for the segment
was driven by strong performance at both MonotaRO and Zoro.
Gross Profit Margin
Gross profit margin was 38.8% in the third quarter of 2026, up 20 basis points
compared to the third quarter of 2025, driven by expansion across the Endless
Assortment segment and a benefit related to the Company's exit from the U.K.
market.
In the High-Touch Solutions - N.A. segment, gross profit margin was 40.8%, down
30 basis points compared to the prior year quarter due to unfavorable freight
expense and mix. In the
2
Endless Assortment segment, gross profit margin increased by 90 basis points
from the third quarter of 2025 due to improvement at both MonotaRO and Zoro.
Earnings
For the third quarter of 2026, total Company reported operating earnings were
$828 million, up 62.0% compared to the third quarter of 2025. Operating margin
was 16.0%, a 500 basis point increase compared to the third quarter of 2025. On
an adjusted basis, operating earnings were $836 million, up 18.2% compared to
the third quarter of 2025. Adjusted operating margin was 16.1%, a 90 basis point
increase compared to the third quarter of 2025. This increase in adjusted
operating margin was driven by sales leverage in both segments and a benefit
related to the Company's exit from the U.K. market. These adjusted results for
the quarter exclude transaction costs associated with the acquisition of
technology assets in the current year period and the loss related to the
Company's exit of the U.K. market, including the sale of the Cromwell business
and closure of Zoro U.K., in the prior year period.
Diluted earnings per share for the third quarter of 2026 were $12.42 on a
reported basis, up 102.9% compared to the third quarter of 2025. On an adjusted
basis, diluted EPS was $12.54, up 22.8% compared to the third quarter of 2025.
The increase was due primarily to strong operating performance, fewer shares
outstanding, and a lower effective tax rate.
Tax Rate
For the third quarter of 2026, the effective tax rate was 24.3%, compared to
34.7% in the third quarter of 2025. On an adjusted basis, the effective tax rate
was 24.3% compared to 24.8% in the prior year period. The variance for the
adjusted tax rate was primarily due to additional tax credit benefits recorded
in the third quarter of 2026.
Cash Flow
During the third quarter of 2026, the Company generated $661 million of cash
flow from operating activities driven by strong net earnings. The Company
invested $115 million in capital expenditures, resulting in free cash flow of
$546 million. During the quarter, the Company returned $396 million to Grainger
shareholders through dividends and share repurchases.
3
Guidance
The Company is updating the following guidance ranges for 2026:
Previous 2026 Guidance Updated 2026 Guidance
Total Company(1) Range Range
(as of August 4, 2026) (as of November 4,
2026)
Net Sales $19.4 - $19.7 billion $19.8 - $20.0 billion
Sales growth 8.4% - 10.0% 10.1% - 11.6%
Daily, organic
constant currency 11.5% - 13.0% 13.0% - 14.5%
sales
growth
Gross Profit Margin 39.3% - 39.6% 39.4% - 39.6%
vs Prior Year 20 bps to 50 bps 30 bps to 45 bps
Operating Margin 15.8% - 16.2% 16.0% - 16.2%
vs Prior Year 80 bps to 120 bps 100 bps to 120 bps
Diluted Earnings per $45.50 - $47.25 $47.00 - $48.00
Share
Operating Cash Flow $2.25 - $2.4 billion $2.35 - $2.45 billion
CapEx (cash basis) $0.575 - $0.65 billion $0.575 - $0.625 billion
Share Buyback $0.975 - $1.05 billion $0.975 - $1.025 billion
Effective Tax Rate ~25.0% ~24.7%
Segment Operating
Margin
High-Touch Solutions - 17.2% - 17.6% 17.3% - 17.5%
N.A.
Endless Assortment 10.4% - 10.8% 10.9% - 11.1%
(1) Guidance provided is on an adjusted basis. Daily, organic constant currency
sales growth is adjusted for the impact of certain divested or closed businesses
in the comparable prior year period post date of divestiture or closure and
changes in foreign currency exchange. The Company believes that a quantitative
reconciliation of such forward-looking information to the most comparable
financial measure calculated and presented in accordance with GAAP cannot be
made available without unreasonable efforts. For further details see the
supplemental information of this release.
Webcast
The Company will conduct a live conference call and webcast at 11:00 a.m. ET on
Wednesday, November 4, 2026, to discuss the third quarter results. The event
will be hosted by D.G. Macpherson, Chairman and CEO, and Laurie Thomson, Vice
President and Interim CFO, and can be accessed at invest.grainger.com . To
access the conference call via phone, please send a request to
InvestorRelations@grainger.com. For those unable to participate in the live
event, a webcast replay will be available for 90 days at invest.grainger.com .
About Grainger
W.W. Grainger, Inc., is a leading broad line distributor with operations
primarily in North America and Japan. At Grainger, We Keep the World Working® by
serving more than 4.6 million customers worldwide with maintenance, repair and
operating (MRO) products and value-added solutions delivered through innovative
technology and deep customer expertise. Known for its commitment to service and
purpose-driven culture, the Company reported 2025 revenue of $17.9 billion. For
more information, visit www.grainger.com .
4
Visit
invest.grainger.com
to view information about the Company, including a supplement regarding 2026
third quarter results and additional Company information.
Safe Harbor Statement
All statements in this communication, other than those relating to historical
facts, are “forward-looking statements” under the federal securities laws.
Forward-looking statements can generally be identified by their use of terms
such as “anticipate,” “estimate,” “believe,” “expect,” “could,” “forecast,”
“may,” “intend,” “plan,” “predict,” “project,” “will,” or “would,” and similar
terms and phrases, including references to assumptions. Grainger cannot
guarantee that any forward-looking statement will be realized and achievement of
future results is subject to risks and uncertainties, many of which are beyond
Grainger's control, which could cause Grainger's results to differ materially
from those that are presented. Forward-looking statements include, but are not
limited to, statements about future strategic plans and future financial and
operating results. Important factors that could cause actual results to differ
materially from those presented or implied in the forward-looking statements
include, without limitation: inflation, higher product costs or other expenses,
including operational and administrative expenses; a major loss of customers;
loss or disruption of sources of supply; changes in customer or product mix;
increased competitive pricing pressures; changes in third-party practices
regarding digital advertising; failure to enter into or sustain contractual
arrangements on a satisfactory basis with group purchasing organizations;
failure to develop, manage or implement new technology initiatives, acquisitions
or business strategies including with respect to Grainger's eCommerce platforms
and artificial intelligence; failure to adequately protect our intellectual
property or successfully defend against infringement claims; fluctuations or
declines in Grainger's gross profit margin; Grainger's responses to market
pressures; the outcome of pending and future litigation or governmental or
regulatory proceedings, including with respect to wage and hour, anti-bribery
and corruption, environmental, regulations related to advertising, marketing and
the internet, consumer protection, pricing (including disaster or emergency
declaration pricing statutes), product liability, compliance or safety, trade
and export compliance, general commercial disputes, or privacy and cybersecurity
matters; investigations, inquiries, audits and changes in laws and regulations;
failure to comply with laws, regulations and standards, including new or
stricter environmental laws or regulations; government contract matters,
including new or revised provisions relating to contract compliance or
performance; the impact of any government shutdown; disruption or breaches of
information technology or data security systems involving Grainger or third
parties on which Grainger depends; general industry, economic, market or
political conditions; general global economic conditions, including existing,
new, or increased tariffs, trade issues and changes in trade policies,
inflation, and interest rates; currency exchange rate fluctuations; market
volatility, including price and trading volume volatility or price declines of
Grainger's common stock; an incident that adversely impacts Grainger’s
reputation or brand; commodity price volatility; facilities disruptions or
shutdowns; higher fuel costs or disruptions in transportation services; effects
of outbreaks of pandemic disease or viral contagions, global conflicts, natural
or human-induced disasters, extreme weather, and other catastrophes or
conditions; effects of climate change; failure to execute on our corporate
responsibility efforts; competition for, or failure to attract, retain, train,
motivate and develop executives and key team members; loss of key members of
management or key team members; loss of operational flexibility and potential
for work stoppages or slowdowns if team members unionize or join a collective
bargaining arrangement; changes in effective tax rates; changes in credit
ratings or outlook; Grainger's incurrence of indebtedness or failure to comply
with restrictions and obligations under its debt agreements and instruments and
other factors that can be found in our filings with the Securities and Exchange
Commission, including our most recent periodic reports filed on Form 10-K and
Form 10-Q, which are available on our Investor Relations website. Forward-
looking statements are given only as of the date of this communication and we
disclaim any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise, except as
required by law.
5
Contacts:
Media: Investors:
Erin Ptacek Kyle Bland
VP, Communications & Public Affairs VP, Investor Relations
Robb Kristopher Kevin Byrne
Director, External Affairs Director, Investor Relations
Media_Inquiries@grainger.com InvestorRelations@grainger.com
6
W.W. Grainger, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(In millions of dollars, except for share and per share amounts)
(Unaudited)
Three Nine
Months Months
Ended Ended
September Septemb…
2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 5,181 $ 4,657 $ 14,944 $ 13,517
sales
Cost of
goods 3,170 2,859 9,053 8,254
sold
Gross 2,011 1,798 5,891 5,263
profit
Selling,
general
and 1,183 1,287 3,463 3,402
adminis…
expenses
Operati… 828 511 2,428 1,861
earnings
Other
(income)
expense:
Interest
expense 21 20 62 61
– net
Other – -7 -1 -21 -10
net
Total
other 14 19 41 51
expense
– net
Earnings
before 814 492 2,387 1,810
income
taxes
Income
tax 198 171 590 481
provisi…
Net 616 321 1,797 1,329
earnings
Less net
earnings
attribu… 29 27 85 74
to
noncont…
interest
Net
earnings
attribu… $ 587 $ 294 $ 1,712 $ 1,255
to W.W.
Grainge…
Inc.
Earnings
per
share:
Basic $ 12.43 $ 6.13 $ 36.12 $ 26.02
Diluted $ 12.42 $ 6.12 $ 36.08 $ 25.97
Weighted
average
number
of
shares
outstan…
Basic 47.0 47.8 47.2 48.0
Diluted 47.1 47.9 47.2 48.1
7
W.W. Grainger, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions of dollars)
(Unaudited)
As of September 30, December 31,
Assets (Unaudited) 2026 2025
──────────────────────────────────────────────────────────────────────────────
Current assets
Cash and cash $ 768 $ 585
equivalents
Accounts
receivable
(less allowance
for 2,877 2,329
credit losses
of $31 and $32,
respectively)
Inventories – 2,303 2,394
net
Prepaid
expenses and 255 176
other current
assets
Total current 6,203 5,484
assets
Property,
buildings and 2,488 2,268
equipment – net
Goodwill 521 360
Intangibles – 327 265
net
Operating lease 354 345
right-of-use
Other assets 235 240
Total assets $ 10,128 $ 8,962
Liabilities and
Shareholders’
Equity
Current
liabilities
Current $ 227 $ 126
maturities
Trade accounts 1,184 963
payable
Accrued
compensation 412 343
and benefits
Operating lease 73 73
liability
Accrued 447 386
expenses
Income taxes 33 49
payable
Total current 2,376 1,940
liabilities
Long-term debt 2,458 2,362
Long-term
operating lease 310 301
liability
Deferred income
taxes and tax 151 121
uncertainties
Other
non-current 95 97
liabilities
Shareholders' 4,738 4,141
equity
Total
liabilities and $ 10,128 $ 8,962
shareholders’
equity
8
W.W. Grainger, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of dollars)
(Unaudited)
Three Nine
Cash Months Months
flows Ended Ended
from September Septemb…
operat… 30, 30,
activi… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 616 $ 321 $ 1,797 $ 1,329
earnin…
Adjust…
to
reconc…
net
earnin…
to
net
cash
provid…
by
operat…
activi…
Provis…
for 6 7 19 20
credit
losses
Deferr…
income
taxes 2 36 33 37
and tax
uncert…
Deprec…
and 67 65 195 190
amorti…
Non-ca…
lease 19 21 59 62
expense
Impair…
loss
and net
losses — 196 — 196
from
busine…
divest…
Stock-… 19 14 58 49
compen…
Change
in
operat…
assets
and
liabil…
Accoun… -47 -40 -557 -252
receiv…
Invent… 72 -8 86 -27
Prepaid
expens…
and -40 1 -72 -32
other
assets
Trade
accoun… -138 -46 174 185
payable
Operat…
lease -24 -26 -72 -79
liabil…
Accrued 127 64 148 4
liabil…
Income
taxes – -16 -5 -20 -42
net
Other
non-cu… -2 -3 -4 -20
liabil…
Net
cash
provid… 661 597 1,844 1,620
by
operat…
activi…
Cash
flows
from
invest…
activi…
Capital -115 -258 -396 -558
expend…
Procee…
from — — — 4
sale of
assets
Cash
paid
for -215 — -215 —
busine…
acquis…
Other – -4 -2 -17 11
net
Net
cash
used in -334 -260 -628 -543
invest…
activi…
Cash
flows
from
financ…
activi…
Short-…
borrow…
(repay…
origin…
maturi… 225 — 100 —
of 90
days or
less,
net
Procee…
from 50 27 102 90
debt
Paymen… -3 — -7 -503
of debt
Procee…
from
stock 1 — 9 2
options
exerci…
Paymen…
for
employ…
taxes -2 -1 -32 -31
withhe…
from
stock
awards
Purcha…
of -278 -291 -739 -798
treasu…
stock
Purcha…
of -1 — -71 —
noncon…
intere…
Cash
divide… -145 -133 -398 -358
paid
Other – — — 9 -1
net
Net
cash
used in -153 -398 -1,027 -1,599
financ…
activi…
Exchan…
rate
effect
on cash 5 -1 -6 21
and
cash
equiva…
Net
change
in cash 179 -62 183 -501
and
cash
equiva…
Cash
and
cash
equiva… 589 597 585 1,036
at
beginn…
of
period
Cash
and
cash
equiva… $ 768 $ 535 $ 768 $ 535
at end
of
period
9
SUPPLEMENTAL INFORMATION - RECONCILIATION OF GAAP TO NON-GAAP
FINANCIAL MEASURES (Unaudited)
The Company supplements the reporting of financial information determined under
U.S. generally accepted accounting principles (GAAP) with the non-GAAP financial
measures as defined below. The Company believes these non-GAAP financial
measures provide meaningful information to assist investors in understanding
financial results and assessing future performance as they provide a better
baseline for analyzing the ongoing performance of its business by excluding
items that may not be indicative of core operating results.
Basis of presentation
The Company has a controlling ownership interest in MonotaRO, which is part of
the Endless Assortment segment. MonotaRO’s results are fully consolidated,
reflected in U.S. GAAP, and reported one-month in arrears. Results will differ
from MonotaRO’s externally reported financials which follow Japanese GAAP.
Adjusted gross profit , adjusted SG&A , adjusted operating earnings , adjusted
operating margin , adjusted net earnings , adjusted diluted EPS
Exclude certain non-recurring items, like restructuring charges, asset
impairments, gains and losses associated with business divestitures or closures
and other non-recurring, infrequent or unusual gains and losses (together
referred to as “non-GAAP adjustments”), from the Company’s most directly
comparable reported U.S. GAAP figures (reported gross profit, SG&A, operating
earnings, net earnings and EPS). The Company believes these non-GAAP adjustments
provide meaningful information to assist investors in understanding financial
results and assessing future performance as they provide a better baseline for
analyzing the ongoing performance of its business by excluding items that may
not be indicative of core operating results.
Free cash flow (FCF)
Calculated using total cash provided by operating activities less capital
expenditures. The Company believes the presentation of FCF allows investors to
evaluate the capacity of the Company's operations to generate free cash flow.
Daily sales
Refers to sales for the period divided by the number of U.S. selling days for
the period.
Daily, constant currency sales
Refers to daily sales adjusted for changes in foreign currency exchange rates.
Daily, organic constant currency sales
Refers to daily sales excluding the sales of certain divested or closed
businesses in the comparable prior year period post date of divestiture or
closure and changes in foreign currency exchange rates.
Foreign currency exchange
Calculated by dividing current period local currency daily sales by current
period average exchange rate and subtracting the current period local currency
daily sales divided by the prior period average exchange rate.
U.S. selling days:
2025: Q1-63, Q2-64, Q3-64, Q4-64, FY-255
2026: Q1-63, Q2-64, Q3-64, Q4-64, FY-255
2027: Q1-63, Q2-64, Q3-64, Q4-63, FY-254
As non-GAAP financial measures are not standardized, it may not be possible to
compare these measures with other companies' non-GAAP measures having the same
or similar names. These non-GAAP measures should not be considered in isolation
or as a substitute for reported results. These non-GAAP measures reflect an
additional way of viewing aspects of operations that, when viewed with GAAP
results, provide a more complete understanding of the business. This press
release also includes certain non-GAAP forward-looking information. The Company
believes that a quantitative reconciliation of such forward-looking information
to the most comparable financial measure calculated and presented in accordance
with GAAP cannot be made available without unreasonable efforts. A
reconciliation of these non-GAAP financial measures would require the Company to
predict the timing and likelihood of future restructurings, asset impairments,
and other charges. Neither of these forward-looking measures, nor their probable
significance, can be quantified with a reasonable degree of accuracy.
Accordingly, a reconciliation of the most directly comparable forward-looking
GAAP measures is not provided.
The reconciliations provided below reconcile GAAP financial measures to non-GAAP
financial measures used in this release: daily sales; daily, organic constant
currency sales; and free cash flow.
10
Sales growth for the three months ended September 30, 2026
(percent change compared to prior year period)
(unaudited)
Q3 2026
Total Company High-Touch Endless
Solutions - N.A. Assortment
Reported sales 11.3% 13.8% 11.9%
Daily impact —% —% —%
Daily sales(1) 11.3% 13.8% 11.9%
Foreign currency 1.2% —% 6.2%
exchange(2)
Business 2.4% —% 1.2%
divestiture(3)
Daily, organic
constant 14.9% 13.8% 19.3%
currency sales
(1)Based on U.S.
selling days,
there
were 64selling
days in Q3 2026
and Q3
2025.
(2)Excludes the
impact of
year-over-year
foreign currency
exchange rate
fluctuations.
(3)Excludes the
net sales
results of the
divested
Cromwell
business and
closed
Zoro U.K.
business,
announced in the
third quarter of
2025 and
completed in
the fourth
quarter of 2025,
in the prior
year period on a
daily basis.
Free cash flow (FCF) for the three months ended September 30, 2026
(in millions of dollars)
(unaudited)
Q3 2026
──────────────────────────────────────────────────────────────────
Net cash flows provided by operating activities $ 661
Capital expenditures -115
Free cash flow $ 546
11
Income statement adjustments for the three months ended September 30, 2026 and
2025
(in millions of dollars)
(unaudited)
R…
%
Q3 of
… 2… N… R…
… R… A… A… s… A… Y… A…
──────────────────────────────────────────────────────────────────────────────
… $ … $ … $ … … % … % … % … %
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R…
%
Q3 of
… 2… N… R…
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──────────────────────────────────────────────────────────────────────────────
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12